Ericsson Issues Dismal Warning;
Telecom Giant to Raise $3 Billion

By

David Pringle Staff Reporter of The Wall Street Journal

Updated April 23, 2002 12:01 a.m. ET

Shares in Telefon AB L.M. Ericsson plunged 24% after it said that it won't make a profit this year and that it plans to raise the equivalent of $3 billion (&euro;3.36 billion) through a share offering.

The world's largest supplier of wireless equipment said it now expects market conditions to remain weak well into next year. Following a weaker-than-expected first quarter and a series of spending cutbacks by mobile-phone operators, Ericsson warned Monday that the global wireless-infrastructure market is now likely to...